January 29, 2010

Toyota has 2 Possible Fixes for Pedal Recall
Toyota has two possible fixes for 2.3 million vehicles it has targeted for accelerator pedals that could stick open, but the automaker doesn't expect to have the repairs available before Monday. The Detroit Free Press reports that as the Japanese automaker expanded the pedal recall to vehicles in China and Europe, a U.S. House committee ordered it and federal safety officials to testify Feb. 25 about the recall and a separate issue with floor mats that now includes 5.4 million vehicles. Toyota spokesman Brian Lyons said besides new parts from a supplier, the automaker was working on two possible repairs dealers could perform, and had discussed options with federal regulators. He said by having both new parts and a repair, Toyota could fix vehicles faster. U.S. Rep. Bart Stupak, chairman of a House Energy and Commerce subcommittee for investigations, has called Toyota to testify Feb. 25 about the company's two recalls. CTS, the supplier that made the pedal at the center of the 2.3-million vehicle recall, said it is building replacement pedals in its factories. "We have the fix. It's a ... robust pedal, which is meeting the tougher specifications by Toyota," CTS Chairman and CEO Vinod Khilnani said Thursday. "All of our three facilities which supply to Toyota are already producing the new pedal." Click here for full coverage of Toyota's plans to repair faulty pedals on several of its models. 
 
Honda Crosstour True to Form
According to Scott Burgess at The Detroit News, the recipe for any crossover is pretty simple. The 2010 Honda Accord Crosstour is essentially a slightly deflated Accord wagon, designed to take on the likes of the Toyota Venza and Nissan Murano. Click here for a photo of the Crosstour. But more importantly, the Crosstour is better than the Accord sedan, one of the top-selling cars in America because of its stalwart reliability and customer loyalty. The Crosstour offers more space inside than its Accord sibling, so there's more versatility and just as good of a ride; most of the parts in the Crosstour can also be found in the Accord. The Crosstour includes a more dynamic roofline - to accommodate the wagonesque functionality. It looks like engineers heated up an Accord and then ran it through a taffy puller, tacking on some checkered running boards and then changing out the front fascia. Burgess writes that Honda's secret for success involves serving up a vehicle that is satisfying in all the right ways. It's not too sweet, not too bitter and always filling. The Crosstour may be more meat and potatoes than dessert, but that remains its key to success. Click here for a gallery of the Crosstour. Click here for Burgess entire review of Honda's newest crossover.

Autos Still Hinder U.S.-S. Korea Trade Deal
A senior U.S. trade envoy said Thursday that worries in the United States over trade barriers to American autos continue to block approval of a free trade agreement with South Korea. Deputy U.S. Trade Representative Demetrios Marantis' comments temper President Barack Obama's pledge to strengthen trade ties with South Korea in his State of the Union address on Wednesday and signal a difficult road ahead for congressional ratification of the accord to cut tariffs and remove barriers to goods and services. According to ABC News, Marantis gave no hint about when the deal would be sent to lawmakers for a vote, saying only that "substance will drive the timing." When pressed on specific U.S. worries, he mentioned the South Korean auto industry's "unfortunate legacy" and "bad history" of excluding foreign autos. Despite Obama's comments on trade, many Democrats resist free trade deals that they say have contributed to a loss of jobs in the United States and to the weakening of worker rights and the environment in the partner country. South Korea has said it is not open to any new negotiations with the United States over the deal. The government warns that the United States could lose several hundred thousand jobs if it fails to act and Seoul's trade agreement with the European Union is ratified. Click here for more on challenges to a pending free trade agreement between the U.S. and South Korea. To read AIADA Chairman Russ Darrow's latest take on the challenges surrounding free trade, click here.

Hyundai Posts Q4 Operating Profit of $728 Million
Hyundai Motor Co. posted a record quarterly operating profit as its small cars proved popular with recession-weary buyers and, with Toyota facing an image crisis, analysts said the South Korean automaker should keep its edge over rivals this year. According to Automotive News, the maker of the Sonata sedan posted October-December operating profit of 837.2 billion won ($728.4 million), up 44 percent from a year earlier and 29 percent above a consensus forecast on Thomson Reuters I/B/E/S. Fourth-quarter net profit nearly quadrupled to 945.5 billion won ($822.7 million), also well above analysts' forecasts. Sales grew 9.3 percent to 9.65 trillion won ($8.40 billion). Hyundai, along with affiliate Kia Motors Corp., is expected to see healthy sales growth this year as economic recovery and new models bolster demand, analysts said. Hyundai was a big winner in 2009 with a shift to smaller cars and government incentives worldwide for car buyers. Popular, low-cost models and sassy marketing helped it grab market share in the United States and in China, now the world's biggest auto market, where its Elantra is the best-selling foreign car. Hyundai said it aims to increase sales this year by 11 percent to 3.46 million cars, trucks and buses. Click here for more on Hyundai's fourth quarter sales success.

Chrysler will Take Part in Arbitration; 409 Rejected Dealers Ready
Chrysler Group will proceed with arbitration in the cases of 789 dealerships it cut during bankruptcy last spring. According to Automotive News, as of Wednesday, 409 former Chrysler dealers had filed for arbitration. The announcement marks a change in Chrysler's tone toward arbitration. Chrysler cut 789 dealers during its trip through bankruptcy, a move sanctioned by Judge Arthur Gonzalez of U.S. Bankruptcy Court in New York. In response to pressure from rejected Chrysler and General Motors Co. dealers, Congress passed a bill allowing dealers to appeal their franchise terminations through arbitration. Filing for arbitration will cost dealerships $1,625 apiece. A filing signals intent but does not obligate the dealer to actually pursue arbitration. Dealers can get a 50 percent refund of the filing fee if they withdraw their submission in time. Tammy Darvish, an AIADA member and a founder of the Committee to Restore Dealer Rights, said she thinks many Chrysler dealers will win reinstatement through arbitration. Her family's Darcars Automotive Group, based in Silver Spring, Md., lost three dealerships during the bankruptcies of Chrysler and GM: a Dodge store in Jacksonville, Fla.; a Chrysler store in Fairfax, Va.; and a Chevrolet outlet in Lanham, Md. Darcars has applied for arbitration in all three cases. Click here for more on Chrysler dealers seeking reinstatement.